PRXM (Proxim Wireless) Interest Coverage: 0 (At Loss) (As of Mar. 2010)


What is Proxim Wireless Interest Coverage?

Proxim Wireless PRXM Interest Coverage is 0 (At Loss) as of Mar. 2010.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Proxim Wireless's Operating Income for the three months ended in Mar. 2010 was $-1.50 Mil. Proxim Wireless's Interest Expense for the three months ended in Mar. 2010 was $-0.19 Mil. did not have earnings to cover the interest expense. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Proxim Wireless's Interest Coverage or its related term are showing as below:


PRXM's Interest Coverage is not ranked *
in the Hardware industry.
Industry Median: 13.73
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Proxim Wireless  (OTCPK:PRXM) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Proxim Wireless Interest Coverage Related Terms

Proxim Wireless Interest Coverage Historical Data

* Premium members only.

The historical data trend for Proxim Wireless's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Proxim Wireless Interest Coverage Chart

Proxim Wireless Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only N/A No Debt No Debt 0.00 0.00

Proxim Wireless Quarterly Data
Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Dec09 Mar10
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only N/A N/A 0.45 N/A 0.00

PRXM vs OSAT, GTXO, DGDM: Interest Coverage Comparison

For the Communication Equipment subindustry, Proxim Wireless's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Proxim Wireless Interest Coverage vs Hardware Industry

For the Hardware industry and Technology sector, Proxim Wireless's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Proxim Wireless's Interest Coverage falls into.


Proxim Wireless Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Proxim Wireless's Interest Coverage for the fiscal year that ended in Dec. 2009 is calculated as

Here, for the fiscal year that ended in Dec. 2009, Proxim Wireless's Interest Expense was $-0.83 Mil. Its Operating Income was $-6.36 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.51 Mil.

Proxim Wireless did not have earnings to cover the interest expense.

Proxim Wireless's Interest Coverage for the quarter that ended in Mar. 2010 is calculated as

Here, for the three months ended in Mar. 2010, Proxim Wireless's Interest Expense was $-0.19 Mil. Its Operating Income was $-1.50 Mil. And its Long-Term Debt & Capital Lease Obligation was $1.55 Mil.

Proxim Wireless did not have earnings to cover the interest expense.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 0 (At Loss) mean?
Proxim Wireless (PRXM) has a Interest Coverage of 0 (At Loss) as of Mar. 2010. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Proxim Wireless and its competitors.
Is Proxim Wireless' Interest Coverage too high?
Proxim Wireless' current Interest Coverage is 0 (At Loss).
How does Proxim Wireless' Interest Coverage compare to OSAT and GTXO?
Proxim Wireless' Interest Coverage of 0 (At Loss) can be compared against companies in the Hardware industry. The industry median Interest Coverage is 13.73. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Hardware company?
The median Interest Coverage among Hardware companies is 13.73, based on 1,673 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Proxim Wireless and its competitors. For the Hardware industry, the median Interest Coverage is 13.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Proxim Wireless's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Proxim Wireless stock overvalued right now?
Proxim Wireless (PRXM) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Proxim Wireless (PRXM), the current Interest Coverage is 0 (At Loss) as of Mar. 2010. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Proxim Wireless Business Description

Address 2114 Ringwood Avenue, San Jose, CA, USA, 95131
Proxim Wireless Corp provides solutions for broadband wireless networks for enterprises, governments, and service providers. Its systems enable a variety of wireless applications, including security and surveillance, VoIP, last-mile access, enterprise LAN, and point-to-point backhaul. The company's product offerings include the Edge 1000 series of wireless broadband solutions; the Stratum series of 5 GHz and 6 GHz fixed wireless solutions for point-to-point and point-to-multipoint connectivity; ORiNOCO AP-9200R, an IP67-rated outdoor access point; ProximVision, a cloud-enabled carrier management system and WLAN controller; and Link calculator and estimator tools. Proxim serves customers through distributors, value-added resellers, system integrators, and original equipment manufacturers.